What type of real
estate is now
particularly
attractive for
investment in
Germany?

What type of real estate is now particularly attractive for investment in Germany?

Какой тип недвижимости сейчас особенно привлекателен для инвестиций в Германии?
A strong economy, thoughtful legal system, political stability, and a high standard of living - these factors make Germany particularly attractive to foreign investors who see real estate in Germany as a "safe haven" in terms of investing and preserving capital.

Now in the real estate market Germany record low loan rates (from 0.8% to 1.8%), which can also be used by non-residents of the country.

Whereas earlier the Germans, due to their high mobility in Europe, mainly rented a house, now, because of these low loan rates, they buy it themselves for rent.
According to statistics, in recent years, Germans spend more than 160 billion euros per year on the purchase of real estate - and this trend will continue.

Thus, foreign investors have to compete, one might say, in tough conditions in the struggle for a good object with local investors.

It is impossible to answer unequivocally in which type of real estate in Germany it is profitable to invest. A subjective factor or preference also has a place to be: someone wants to invest in hotels, someone in chain stores, someone in apartment buildings. But, it is important to note the main factor: for investments, what is liquid is attractive - it can be either purely commercial objects or apartments for rent.

For investors with a relatively small budget - we recommend apartments. Since all regions of Germany differ in prices, we can say about our region of Frankfurt am Main (Hesse) that a small budget for this region is a budget of up to 1 million.

Profitability on private real estate is lower than on commercial. Commercial real estate income averages from 5% to 8%, apartment income from renting it out and renting is about 3.8%. But it is also important to consider that private real estate is growing faster in price than commercial real estate, on average by 7-10% per year, i.e. in three years your apartment will rise in price by 30%.
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